GMR 161: How Annuities Fit Into Your Retirement Strategy

Show Notes


How much should I be planning for retirement?


The Income Replacement Ratio


$45,000 in expenses (2 people 65 or older)


$4,000 in expenses


$2,500 in Social Security


Gap $1,500 has to come from other sources


Real estate, stock/bonds/mutual/funds, annuities, etc.





America’s Income Challenge


Only 30% of people have a plan.


From $4,000 a month, $1,000 a month needed for utilities, food,
and property insurance could be covered by annuities.


Most Americans will spend similarly in retirement as they did
while working.






The Three-Legged Stool of Fulfilling-Stage Savings


Government benefits


Social Security


Corporate benefits


Pensions


401(k)


Private benefits


Savings


Real Estate


Annuities


History of Annuity Products


People view annuities as an investment instead of looking at them
as an insurance product.


Fees were high in the past. Today’s annuities are different, from
low to no fees.


Disclosure - People were taken advantage of in the past. The new
legislature has changed that.


JD Powers rating of annuities.


Today’s annuities are useful for guaranteed income.





Who should buy annuities?


Typical annuity buyer is age 50 and older.


 Have $100,000 or more in assets.


Purchase an $80,000 to $120,000 annuity to generate income in
retirement.


Although older people buy annuities, everyone should consider if
these are good products to cover some of their retirement needs.





The two options for buying annuities


Single premium - lump-sum purchase ($80,000).


Flexible premiums - monthly contribution ($500 down and $200 per
month)


Resources


Harry N. Stout Website - www.financialverse.com
Today’s Annuity Products: A Tool to Create Protected Lifetime
Income
Financial Verse Books by Harry N. Stout
Budgeting tools and other free resources -
https://leosabo.com/resources
David’s website - www.stewardshippastors.com